Spanish property prices now leveling

The perception that the housing market is nearing the end of its adjustment is gaining popularity. According to the Consumer Confidence Indicator for November, prepared by the Centre for Sociological Research, 46.4% of those surveyed think that housing prices will stabilize over the next year.

This is nearly 10 percentage points higher than that registered a year ago when, in December 2012, only 37.1% were of this opinion with regard to property prices. In addition, at that time, up to 52.7% of those questioned expected further drops in the price of houses, while currently only 36.6% believe that this depreciation in prices will continue. 7.4% even predict that prices will rise, which is 2.5 points more than in 2012.

This general feeling that housing prices could be nearing the end of their fall coincides with some statistics released in recent weeks. On the one hand, the Ministry of Development reported that during the third quarter of 2013, homes recorded their lowest drop since 2010 – even becoming more expensive in several regions – and on the other, the Notaries are also already beginning to talk of increases in property values.

Given this possible outlook, the desire to acquire a home is beginning to grow, albeit very slightly. El Mundo reported that, according to the November Consumer Confidence Indicator, 3.8% of respondents indicated that they “plan to buy a home in the next year”, which is a significant increase over the last month of 2012, when only 2.1% said they would be willing to take that step.